• News Item In The August Model Railroader

  • Discussion related to everything about model railroading, from layout design and planning, to reviews of related model tools and equipment. Discussion includes O, S, HO, N and Z, as well as narrow gauge topics. Also includes discussion of traditional "toy train" and "collector" topics such as Lionel, American Flyer, Marx, and others. Also includes discussion of outdoor garden railways and live steamers.
Discussion related to everything about model railroading, from layout design and planning, to reviews of related model tools and equipment. Discussion includes O, S, HO, N and Z, as well as narrow gauge topics. Also includes discussion of traditional "toy train" and "collector" topics such as Lionel, American Flyer, Marx, and others. Also includes discussion of outdoor garden railways and live steamers.

Moderators: 3rdrail, stilson4283, Otto Vondrak

  by jmp883
 
I just received my August issue of MR and this news story got my attention rather quickly. Lionel and Athearn are being sued by the Union Pacific Railroad for various trademark violations. UP has publicly stated that it is going after those who use their logos without their permission.

I fully understand that a trademark is a registered, licensed logo that represents a corporation or other similar entity and that the owners of that trademark don't want to be misrepresented by the misuse of that trademark or have others make money from using their trademark without permission. That being said, I still feel that UP is slightly over-reacting to this. The MR article states that both companies are being sued for NUMEROUS trademark violations. Now, correct me if I'm wrong but I've heard through the grapevine that both Athearn and Lionel have been in the model railroad business for a couple of years now and I'm pretty sure they only use railroad logos on the model trains that they sell to model railroaders. THIS IS MISREPRESENTATION OF THE UP LOGO? I know that, legally, it is but it's not like somebody is painting a real locomotive with UP's logo and then pretending to be a UP train (or worse). These are 2 of the biggest model companies in the country making models of trains for our enjoyment. I fail to see how UP sees this as misrepresentation or a trademark violation that will hurt their corporate image. Why can't all involved sit down and work out a licensing agreement? I'm sure Athearn and Lionel have licensing agreements with other railroads.

The part of this story that has me worried is that, according to the article, UP wants a jury trial. You can bet that there won't be any model railroaders on that jury due to possible conflict of interest claims. Knowing how thorough most attorneys are in their research, I think that'll be a pretty safe bet to make. I've been a modeler for most of my 39 years and most people, when I tell them about my hobby, just look at me kind of funny and say 'Oh, model railroader is just the adult way of saying you still play with trains'. A jury of people with that attitude won't be in the best interests of Athearn and Lionel, that's for sure. And, since they aren't modelers, they won't necessarily know or understand that Athearn and Lionel are two of the biggest and most respected model companies in the hobby.

What will the consequences be? MR doesn't address that and we won't know until the jury decides. Will it put both companies out of business? No, probably not. Both companies may be barred from releasing any UP models in the future, they will most likely be fined (and since both companies are not corporate giants like UP, those fines could really hurt them) and because of those fines they may have to raise their prices to the consumer in order to recoup their legal fees, etc.

Maybe I'm reading too much into this, and UP absolutely has every right to protect its trademarked images and logos. It just seems to me that UP is taking too strong a stand with 2 of the giants in the model railroad industry.

Your thoughts........

Joe P :D
Long Live The EL (and Athearn, Lionel, and UP)
www.geocities.com/jmpwpd29

  by fglk
 
:(
Last edited by fglk on Thu Aug 19, 2004 7:36 pm, edited 1 time in total.

  by thirdrail
 
While I personally dislike what UP is doing and wish I was not retired so I could make my feelings known by taking freight away from the UP - the only action they might pay attention to - I do find it hilarious that UP is suing Lionel, which has had a reputation of agressively defending its trademark against all comers and charging others high fees for its use. Since Lionel defends its trademark so vigorously, I can't imagine why it thought that UP would not do the same.

It really does not matter whether or not juries are familiar with the hobby. UP has a problem in that its logo has been around for a century and they are just now getting around to defending it. It has been in the public domain for far too long and you can be sure that the attorneys for both Lionel and Athearn will point this out. Understand the requirement is 50 years, but both have been offering UP lettered trains since before 1954, without payment of royalties.

  by XRails
 
It is all about money. Why have UP and CSX suddenly started enforcing their copyright? Because they realized it is a huge revenue boost to take a cut from the model railroading industry. Sports teams and movie studios have all generated huge revenues on licensing. Railroads need all the money they can get these days, and if it keeps the trains on the road I'll gladly fork over my extra $5 (it is assumed that if you're buying the model you support the road, right?).